NVDA:
Is it a Chip Company?
Is it a Data Center Company?
Is it a Crypto Company?
Is it a Gaming Company?
Is it a Autonomous Driving Company?
Is it an Artificial Intelligence (AI) Company?
Is it an Augmented Reality / Virtual Reality play?
Well, it would not be incorrect to say YES to all of the above, but the most important thing is the GPU/AI at the core. More so, it does not even have competition from the FAANG names as well. In fact their AI Servers depend on NVDA’s GPU. Some Analysts tout NXPI as an AI play but in reality they just provide the chips for sensors. To put the things in right perspective, NXPI sensors are like the eyes/ears but the real processing is done by the brain (NVDA’s GPU) so you know who is the Boss! With everything going gangbusters for this baby and hardly any competition, it could easily double from here. Is it priced for perfection? Not really. Agreed that the business from Crypto mining is volatile (just like Bitcoin) but other businesses like Autonomous driving / AR / VR are just taking off and can easily compensate for the Crypto downfall.
I remember the days from my School when we used to watch a commercial from a Television Company called ONIDA – “Neighbor’s Envy Owner’s Pride”. I truly believe the same when it comes to NVDA. Have a nice long memorial weekend and drive safe (the traffic is crazy out there).